Over the last few years, over 500 thousand people have been moving to Texas.
From favorable tax rates to family-friendly neighborhoods, Houston has grown at unprecedented rates in the last decade. This growth has resulted in a booming local economy and an evolving real estate market to meet the ever-growing demand.
Houston real estate has evolved over the last decade to keep up with demand but has also expanded. This is evident by the hundreds and thousands of real estate projects throughout the state. However, this also led to the average property price skyrocketing to record highs.
Interested in learning more about the local real estate market in Houston? You’ve found the right blog. Read on for more information on Houston real estate.
Why Invest in Houston, Texas?
Houston has been booming over the last few years. With hundreds of thousands of new residents flocking to Texas, a large chunk of them are making Houston their new home. Here are a few reasons why people are moving to Houston, Texas.
Booming Job Market
The first thing that many people talk about when they bring up the booming city is the local economy. The local economy in Houston is directly responsible for the rise in property prices as the job market has grown significantly over the last decade. This has brought more people into Houston, driving up the demand for housing in the city.
Businesses have been drawn to Houston due to favorable tax rates, a variety of governmental incentives, and a relatively stable economic environment. This allows businesses to invest without the risks that may be present in other parts of the country.
Space for the Whole Family
Houston may look like New York from certain angles, but its far from it. The city does have a few big buildings, but also has massive suburbs with good schools for your kids. This helps make the city the perfect place to raise a family.
The homes and land in Houston represent that message as most properties include enough space for the entire family. This means that you can get that in-ground pool in the backyard with ease!
Favorable Tax Rates
Lastly, the tax rates in Texas are a major factor that has brought people to the state. The state does not have any income tax, allowing you to save thousands of dollars every year in taxes. However, it must be noted that the state does compensate for this with higher property taxes.
Why Invest in Houston Real Estate?
Houston is one of the largest metropolitan cities in the United States. While its not comparable in size to New York City or Los Angeles, the city has everything you could ever dream of. In addition to this, the city offers a much more affordable life, making it perfect to raise a family.
Thinking about investing in the local real estate market in Houston? Here are a few of the benefits of investing in Houston real estate.
1. Stable Rental Market
If you’re thinking to invest in property to rent it out, Houston is the perfect location. This is because the rental market in Houston is fairly stable. In simple terms, a stable rental market means that you can expect a certain amount of rent every month as other properties in the area are all similarly priced.
2. Tons of New Developments
Houston may be a great place, but its also expanding and evolving. There are hundreds of new developments all over the city, expanding to accommodate even more people. This also means that there are opportunities you can take advantage of throughout the city.
3. A Growing Economy
As mentioned above, the economy in Houston is booming. This directly impacts the demand for housing, allowing property prices to rise in the process.
4. Affordable Land
Land is incredibly affordable in Houston. This makes it perfect for those who want to build their dream home instead of buying one. Property comes in massive sizes in Houston, so you will be able to find a massive plot to design and build your dream home.
Best Neighborhoods in Houston to Invest In
Houston is a diverse city that includes tons of different neighborhoods. This adds to the property market in the area as you can find exactly what you’re looking for. Whether you want a city apartment with a view of the skyline or a comfortable duplex for your family, Houston has it all.
Houston is also a well-designed city with schools, stores, and public services throughout the entire metro. While there are some neighborhoods better suited for raising families, the truth is that you’ll be able to find everything you need no matter where you decide to stay.
When it comes to finding the perfect neighborhood to invest in, there are three major names that always come up. This is Midtown, Memorial Park, and Bellaire. Here’s a quick look at these three neighborhoods along with what makes them a great place to invest in.
If you’re a working professional that wants to build a career in Houston, Midtown is the place to be. The neighborhood is home to around 15,000 people but is growing at an incredibly rapid rate. Midtown offers you easy transportation to the central business district but also offers incredibly affordable rent prices compared to other major cities.
This is one of the best parts about Houston as the cost of living is significantly lower even though you’re in the heart of the city. In this way, you can save thousands of dollars every year on rent, allowing you to live a much better lifestyle compared to other metro cities in the country.
2. Memorial Park
If you want to have the perfect blend of the suburbs and the city, Memorial Park is the perfect place for you. Memorial Park is technically a peaceful suburb that offers everything you need to raise a family away from the busy city. However, its close enough to the city so that you don’t feel left out of anything.
In this way, you can still work in the city and escape to the suburbs every day. This makes the suburb perfect for people raising kids or those who want the best of both worlds for a little.
Bellaire is listed as one of the most popular and beloved places in Houston. This neighborhood is exclusively residential and offers you the peaceful life that you would expect in a small town. The entire area is incredibly quiet, making it the perfect place to raise a family.
While Midtown puts you in the center of town and Memorial Park puts you in the middle, Bellaire is the perfect place for people who want a bit of distance from town. Bellaire does still have excellent public services and amenities, but none of the hustle and bustle of Midtown.
The Houston Real Estate Market
While the general real estate market in the United States has been on the rise in the last few years, a few cities have definitely stood out. These cities offered more than just the city itself but also a favorable economic environment. In this way, people were drawn to the city for economic opportunities, driving up the demand for real estate in the process.
The real estate markets in Florida, Nevada, and Texas saw record-breaking demand over the last few years. This is because these states offered favorable economic environments that other parts of the country simply could not compete with. This environment directly impacts residents but also encourages businesses to move to the state and employ locals.
This influx of businesses helped drive up the property prices for commercial buildings as well. In this way, the entirety of the real estate market in Houston benefited in the last few years.
Houston Real Estate Market Trends
While many may say that the Houston real estate market skyrocketed during the pandemic, the truth is that it was already going up before then. Prior to the pandemic in 2020, the favorable tax rates in Texas were pulling businesses and people to the state. This saw insane job growth in the area, with talent from around the country moving to Texas.
This influx of people resulted in the demand for property increasing at record-breaking rates. The property market did stagnate for a few months at the beginning of the pandemic, but continued to rise once government incentives kicked in. These economic conditions saw the value of property increase to record highs throughout the country, particularly in Houston.
This market trend was expected as the natural reaction to inflation. As mentioned above, investing in real estate is a natural hedge against inflation. In this way, once inflation started to materialize in the general economy, mortgage rates and property prices began to grow.
Average Property Price in Houston
In Houston, the average home on the market sells for between $500,000 and $1 million. When it comes to the average price of a family home in Houston, that figure is around $430,000. While this may not sound like a massive price tag for a single-family home, the truth is that this number is up by around 15% this year alone.
The average family home in Houston was around $250,000 a few years ago, and under $190,000 a decade ago. This showcases the clear trajectory of the Houston real estate market over the last few years. Its no secret that the real estate market skyrocketed in the last few years, but that rapid growth is slowing down dramatically.
The Perfect Time to Sell
As mentioned above, property prices in Houston have steadily been on the rise over the last few years. In simple terms, the property price has doubled in most neighborhoods in Houston in just the last 10 years. However, the market has begun to slow down.
This means that it may be the perfect time to sell your home in Houston. While its true that Houston real estate is a great investment, Houston is also an incredibly affordable city to live in. This means that rent is still fairly low compared to the skyrocketing property prices.
This adds to the benefits of selling your Houston home. Selling your home while the market is slowing down is the perfect decision as you get to cash out on your investment close to the top. When real estate markets plateau, they generally contract afterward.
Selling Your Home
It doesn’t need to take you months and years to sell your home. Whether you have a small one-bedroom apartment or a four-bedroom duplex, Millennial Home Solutions makes it incredibly easy to sell your home. Millennial Home Solutions buy homes from residents throughout the country and only need some basic information and a few photos to give you an offer.
This means that you can get an offer for your home in just a few days! Once you get an offer for your home, you can set your closing date and finalize the paperwork. This makes selling your home incredibly simple and easy.
Real Estate in Houston, Texas
As mentioned above, Houston is a booming city that’s attracting people by the thousands every month. In addition to a thriving local economy, Houston real estate has also steadily been on the rise. However, prices for property in the area are beginning to slow down, making it the perfect time to sell and cash out your profits.
Despite what you may think, selling your home doesn’t need to take years. With Millennial Home Solutions, you can get an offer for your home in no time.
If you want to learn more about how Millennial Home Solutions works, contact us today.